[Congressional Record Volume 143, Number 23 (Thursday, February 27, 1997)]
[Extensions of Remarks]
[Pages E343-E344]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        REGIONAL COOPERATION ACT

                                 ______
                                 

                      HON. JAMES A. TRAFICANT, JR.

                                of ohio

                    in the house of representatives

                      Thursday, February 27, 1997

  Mr. TRAFICANT. Mr. Speaker, today I am introducing the Regional 
Cooperation Act [RCA], a significant first step in the effort to 
discourage fractionalization and encourage cooperation among America's 
communities. I urge my colleagues to cosponsor this important measure.
  The Federal Government has always been a powerful force in funding 
economic development opportunities. From the voyages of Christopher 
Columbus to the establishment of the New York and Virginia colonies, 
nations have invested in the efforts of their people in order to build 
stronger national economies.
  Unfortunately, while Federal support is an important undertaking in 
general, it has in many circumstances led to infighting and 
fractionalization. In the quest for limited Federal resources, 
communities have battled their neighbors and, as a result, undercut 
their regional economies. Dr. Gil Peterson, an expert in urban studies 
at Youngstown State University, noted: ``All too often, political 
decisions

[[Page E344]]

are made to reward as many political entities as possible, and the 
level of investment is spread too thin to be effective.''
  The National Association of Public Administrators [NAPA] agrees. In 
its publication ``A Path to Smarter Economic Development: Reassessing 
the Federal Role'', NAPA asserts that government agencies ``tend to 
perpetuate a focus on small political and geographic units rather than 
regions.''
  The RCA is an important first step in changing the Federal 
Government's divisive approach to funding economic development 
activities. The RCA encourages regional cooperation by amending the 
criteria used by the U.S. Department of Housing and Urban Development 
[HUD] to award Economic Development Initiative [EDI] grants. The new 
criterion will simply read: ``When applicable as determined by the 
Secretary, the extent of regional cooperation demonstrated by the 
proposed plan.'' Note that my measure in no way mandates regional 
cooperation. Rather, if such cooperation is appropriate, applicants 
will benefit if their proposals reflect a sense of cooperation with 
their neighboring communities.
  EDI's potency as a tool for enhancing and expanding economic activity 
make it an appropriate starting point for encouraging regional 
cooperation. Since its inception, over $400 million in EDI grants have 
funded the revitalization efforts of over 100 communities. Further, EDI 
funds are competitively awarded, are limited to a percentage of the 
section 108 and must work in tandem with the loan guarantee. As such, 
the amount of an EDI award is controlled, yet no formula has been 
uprooted to implement my measure.
  The Tri-County Mini-Loan Fund, Inc., a revolving loan fund for small 
business ventures in my congressional district, is a nationally 
renowned program that boasts strong regional cooperation. Since its 
inception in 1992, the Mini-Loan Fund has pumped nearly $2 million into 
the regional economy with few defaults.
  In establishing the Mini-Loan Fund, we observed the impact of 
fractionalized efforts and took a different path. We worked with banks, 
local universities, and non-profit organizations from all over Ohio's 
Mahoning Valley to ensure the entire market would benefit from the 
fund, not just those within specified political boundaries. In applying 
for EDI and section 108 funding to enhance the program, three counties 
and three cities submitted six separate applications and bundled them 
together to form a singular, powerful application.
  As a results, HUD not only awarded our Mini-Loan Fund nearly $8 
million in grants and loan guarantees, but then-Assistant Secretary 
Andrew Cuomo declared it a ``national model of regional economic 
development.'' The now-Secretary Cuomo went on to thank the 
commissioners and mayors of the respective counties and cities for 
``pooling your resources to grow jobs for the region.''
  Mr. Speaker, the Federal Government is and will continue to be a key 
in successful local community development activities. It just needs to 
play its role a little smarter. Instead of playing communities off one 
another, it needs to bring them together. As we witnessed in my 
district, such cooperation can be a powerful tool for revitalizing not 
only a community, not an entire region.
  Again, I urge my colleagues to cosponsor the Regional Cooperation 
Act.

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